Stryker Humming Along, But Seems To Be Straining The Sell-Side

However you feel about the valuation, I don’t know how you don’t admire the money-making machine that is Stryker (SYK), and this excellent med-tech company continues to execute at a high level that most other med-techs (if not most other companies in general) could only aspire to reach. The “but” is that once you reach such a high level, feeding the Street’s insatiable appetite for “more” gets harder and harder.

Although transitioning to the next year in my model does boost my fair value assumptions for Stryker, it’s not enough to bring the shares into the realm of “cheap”. It’ll probably take a significant market washout or a real misstep from the company to drive significant derating, though a suppose it’s plausible that just a general “it’s gone as far as it can go” malaise could come into play. Whatever the case, it’s a must-follow if you care about med-tech, but it’s hard to get excited about what looks like a mid-single-digit prospective return, particularly with Stryker likely to be more on the sidelines with growth-driving M&A in the near future.

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Stryker Humming Along, But Seems To Be Straining The Sell-Side